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UK businesses have been warned that, just like individuals, they too are at risk of becoming the victims of identity fraudsters who seek to take out loans in their names, open bank accounts in their names or make fraudulent purchases on existing accounts.

And, according to data from merchant banking group Close Brothers, these identity fraudsters may have already targeted around 200,000 businesses.

It is not only losing money through fraudulent financial dealings, whether through secured loans or otherwise, that businesses have to worry about. Their reputations could be at stake too, as financial irregularities could lead to consumers losing trust in a business’s brand.

Some businesses may only realise they have been targeted once they apply for a loan, only to find that an unexpectedly unhealthy credit score makes them ineligible.

Meanwhile, separate data released by the Metropolitan Police shows that identity theft may already be costing businesses around £50 a year.